While there is always some risk involved with doing online Work, many of the same measures that keep your traditional money safe will also protect your cryptocurrency. Protecting your cryptocurrency wallet requires the same measures as securing your online financial accounts. However, you may want to take some further measures to protect your bitcoin investment.
Tips for Keeping Your Cryptocurrency Wallet Safe
Cybercriminals are using sophisticated ways and tools to get into cryptocurrency exchanges and wallets. Read this fantastic book Based On Hacking before implementing the top six recommendations for protecting your bitcoin wallets against theft.
Utilizing a Two-Factor Authentication System
With 2FA, your account will be protected in more ways than one. A verification code is sent to you through text message or email whenever a login attempt is made. This additional security measure will make it more difficult for hackers to access your account. They need this verification code, so they can phone and offer you money to hand it over.
Never tell anybody your Two-Factor-Authentication (2FA) code, One-Time-Password (OTP), or any other similar secret verification code. Calls to bitcoin exchanges won’t prompt for your password or other personal information.
Stay away from Social Media Sites to Prevent Being a Victim of Cyber Scams
Take for instance the scenario where you are watching a video on YouTube about making money trading cryptocurrency. The content provider is well-known in this industry, and the channel has over 500,000 subscribers. The channel owner has posted a message inviting people to contact them through WhatsApp or Telegram to invest with them and quadruple their money.
The contact number appears, and it may be saved in your phone. You sign up with them without giving it much consideration and end up joined to their “exclusive” Telegram group. It’s an opportunity you know will change your life, right? After a few days, you send $500 worth of Bitcoin, Ethereum, or any other cryptocurrency with the promise that you would “receive it doubled to your wallet in a day.”
Safely tuck away the Seed Phrase in Step 3.
Providers of wallet software like MetaMask generate a “seed phrase” consisting of 12–24 completely made-up sentences. This seed phrase must be entered in exactly the same sequence as it was given to you when you signed up.
A reliable “forgot your password” option is unfortunately unavailable. The same thing happens to your wallet if you forget your seed phrase. Store this seed phrase in a safe, non-online place. Write it down and store it in the same place you keep your other paperwork.
Make use of a “cold wallet”
You should be familiar with the two main categories of bitcoin wallets:
Exodus and MetaMask are examples of “hot wallets,” whereas “cold wallets” refer to storage media that is not linked to the internet, such as a USB drive.
While hot wallets provide convenience, they also increase the possibility of theft due to their widespread availability. Cold wallets are more difficult to set up technically but provide more security. Lost offline wallets do not have a “forgot your password” feature.
One such company is Ledger, who developed a very secure hardware wallet. To ensure the safety of your Bitcoin private keys, you should store them on a USB stick that has built-in encryption and other security measures.
always and twice-over confirm the recipient’s wallet address
The bitcoin wallet address is used to verify the identity of the person sending or receiving the cryptocurrency. Typically between 26 and 35 characters in length, this address contains a mix of letters, numbers, and other symbols. Never transmit bitcoins without first verifying the recipient’s identity.
Sixth, use modern virus protection software
Numerous antivirus programmes provide formidable protection against crypto-hacking and phishing attempts. To guard your financial information and draw attention to any phishing attempts, these programmes analyse any incoming email.
Spend money on legitimate anti-virus software and remember to update it regularly.